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You Have Estimated the Following Regression to Explain Hourly Wages

Question 42

Essay

You have estimated the following regression to explain hourly wages, using a sample of
250 individuals:  AHE i=2.441.57× DFemme +0.27× DMarried +0.59× Educ +0.04× Exper 0.60× DNonwhite (1.29)(0.33)(0.36)(0.09)(0.01)(0.49)+0.13× NCentral 0.11× South (0.59)(0.58)R2=0.36,SER=2.74,n=250\begin{aligned}\text { AHE } _ { i } = & - 2.44 - 1.57 \times \text { DFemme } + 0.27 \times \text { DMarried } + 0.59 \times \text { Educ } + 0.04 \times \text { Exper } - 0.60 \times \text { DNonwhite } \\& ( 1.29 ) ( 0.33 ) \quad \quad\quad\quad\quad\quad\quad( 0.36 )\quad\quad\quad\quad\quad\quad \quad ( 0.09 ) \quad\quad\quad\quad\quad ( 0.01 )\quad\quad\quad\quad\quad(0.49) \\\\& + 0.13 \times \text { NCentral } - 0.11 \times \text { South } \\& ( 0.59 ) \quad \quad\quad\quad\quad\quad\quad( 0.58 ) \\\\& R ^ { 2 } = 0.36 , S E R = 2.74 , n = 250\end{aligned}

Test the null hypothesis that the coefficients on DMarried, DNonwhite, and the two regional variables, NCentral and South are zero. The FF -statistic for the null hypothesis βmaxriad =βmomwhite =βnoentral =βsaurh =0\beta _ { \text {maxriad } } = \beta _ { \text {momwhite } } = \beta _ { \text {noentral } } = \beta _ { \text {saurh } } = 0 is 0.610.61 . Do you reject the null hypothesis?

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